Xero Ltd (ASX: XRO) shares have been smashed. The high-growth tech name is down 37% so far in 2026 and a brutal 55% over the past 12 months.

That’s a dramatic fall for a company that was once a market darling.

So, is this a warning sign or a rare opportunity? Most brokers seem to think the latter.

Sticky users, scalable growth

Let’s start with the fundamentals.

Xero is a cloud-based accounting platform built for small and medium-sized businesses. It handles invoicing, payroll and financial reporting in one place, making Xero shares a mission-critical tool for its customers.

And this isn’t some niche player. Xero has built a global footprint across Australia, New Zealand, the UK, and beyond. Its subscription model delivers reliable recurring revenue, while its deep ecosystem of integrations keeps customers locked in. High switching costs. Sticky users. Scalable growth.

In short, this is still a high-quality business.

Hit by perfect storm

So why the heavy sell-off?

It’s not just Xero shares. The broader tech sector has been under pressure, with names like WiseTech Global Ltd (ASX: WTC) and Technology One Ltd (ASX: TNE) also pulling back. After a strong run in 2025, valuations looked stretched and the market was primed for a reset.

Then came a new overhang: artificial intelligence (AI).

Investors started asking whether AI could disrupt traditional software models. Could smarter, cheaper tools reduce the need for subscription platforms like Xero? That uncertainty has weighed heavily on sentiment.

Add rising interest rates — which tend to hit growth stocks hardest — and you’ve got a perfect storm.

Bargain hunters on the move

But here’s where things get interesting.

After months of selling, Xero shares are now trading well below their previous highs. And that’s starting to turn heads. Bargain hunters are circling, looking to snap up quality growth names at discounted prices.

The analysts are already leaning that way.

According to TradingView data, 13 out of 14 analysts rate Xero as a buy or strong buy. Some price targets suggest massive upside, with the most bullish view pointing to $231.35, implying potential gains of up to 225% over the next year.

Meanwhile, Morgan Stanley has just reiterated its buy rating with a $130 target. That suggests a possible 82% upside from current levels.

Competition is heating up

That’s a big disconnect between price and expectations.

Of course, risks remain. Competition in accounting software is heating up, and any slowdown in subscriber growth or margins could hit the stock. The AI disruption narrative also hasn’t gone away.

But zoom out, and the long-term story for Xero shares still stacks up.

Xero has scale. It has recurring revenue. It has sticky customers. And it operates in a massive global market that’s still shifting to the cloud.

The post Down 55%, are Xero shares the most overlooked bargain now? appeared first on The Motley Fool Australia.

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• $2,000 to invest? 3 ASX shares to consider today

Motley Fool contributor Marc Van Dinther has positions in WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Champion Iron Ltd (ASX: CIA) share price is in focus today as the company announced the successful completion of its voluntary cash tender offer to acquire over 92% of Norway’s Rana Gruber, a high-purity iron ore producer. Champion paid NOK 79 per share, with the total transaction valued at around US$300 million.

What did Champion Iron report?

• Acquired 92.48% of Rana Gruber’s issued shares at NOK 79 per share in cash
• Total purchase price of approximately US$300 million
• Funded the deal with cash, a US$100 million private placement, and a new US$150 million term loan
• Expected near-term accretive impact on Champion’s revenue, EBITDA, and cash flows
• Rana Gruber produced over 1.8 million tonnes of high-purity iron ore in 2025
• Champion to proceed with compulsory acquisition of remaining shares and delisting Rana Gruber from Euronext Oslo Børs

What else do investors need to know?

The Rana Gruber deal broadens Champion Iron’s product portfolio, giving it access to new high-purity hematite and magnetite iron ore concentrate blends. Rana Gruber’s proximity to key European customers complements Champion’s Bloom Lake operations and is set to enhance sales diversification.

The expanded group will benefit from competitive all-in sustaining costs, access to renewable power, and a strong track record of cash flow generation. Champion has refinanced part of its US$400 million revolving credit facility to support the transaction, with key lenders participating.

What did Champion Iron management say?

Champion’s CEO, David Cataford, said:

The closing of this transaction marks a defining milestone for Champion. Combining our businesses strengthens our leadership as a sustainable supplier of high-purity iron ore produced with a low-carbon footprint, while preserving the culture, expertise, and pride that define both companies. Rana Gruber’s proximity to European customers complements Bloom Lake’s high-purity products and its Direct Reduction Pellet Feed project, currently in the commissioning phase. We look forward to working closely with Rana Gruber’s team to unlock value for our stakeholders and continue to positively impact our host communities.

What’s next for Champion Iron?

Champion plans to complete the compulsory acquisition of the remaining shares in Rana Gruber and delist it from the Oslo exchange. Management aims to integrate Rana Gruber, collaborate on sales strategies, and extract synergies from the combined asset base. There’s a shared focus on supporting the green steel sector, further grade improvements, and delivering value to both companies’ communities and employees.

In the near term, Champion expects the deal to boost its revenue, earnings, and operational cash flow per share while maintaining financial leverage at prior levels.

Champion Iron share price snapshot

Over the past 12 months, Champion Iron shares have risen 23%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Champion Iron finalises acquisition of Norway’s Rana Gruber appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

In the last month, many investors have seen significant damage to their portfolios. 

The ongoing conflict in the Middle East has weighed heavily on global equities. 

Here in Australia, the benchmark S&P/ASX 200 Index (ASX: XJO) is down approximately 2.6% since the beginning of March. 

You might be scratching your head, wondering what strategies can help weather the storm. 

A new report from VanEck has shed light on the resilience of HALO investing this past month. 

What is HALO investing?

HALO stands for Heavy Assets, Low Obsolescence. 

According to VanEck, these are companies that have cash flows tied to essential real-world demand. This is supported by long-lived infrastructure, regulated frameworks, and long-term contracts.

Applied to the Australian market, the HALO universe spans mining, energy, infrastructure, utilities, transport, telecommunications, staples and logistics. The S&P/ASX 200’s exposure to these names is heavily concentrated in a small number of mega-cap miners.

Therefore, we think, the problem for many investors is that they are not getting enough meaningful exposure to all the HALO companies via funds that track or are benchmarked to the S&P/ASX 200.

How to benefit from HALO with this ASX ETF

According to the VanEck report, an equal-weighted approach could reduce concentration and provide more meaningful exposure to these HALO companies. 

One ASX ETF that provides this meaningful exposure is the VanEck Vectors Australian Equal Weight ETF (ASX: MVW).

It utilises an equal weight approach, which provides a larger exposure to these HALO companies.

HALO companies share a common characteristic: their competitive advantages are rooted in physical assets that are difficult, expensive or impossible to replicate. 

These include pipelines, toll roads, rail networks, power stations, mine sites, ports, fibre networks and distribution centres. The assets are essential to the functioning of the economy, supported by long-duration contracts or regulatory frameworks. They generate cash flows that are relatively insulated from technological disruption.

Over the last month, this strategy and focus has resulted in a nearly 3% rise for the MVW ASX ETF, outperforming the ASX 200. 

The strategic approach

This ASX ETF uses a HALO-style approach by tilting its holdings toward companies with hard, essential assets and more stable, predictable cash flows. 

While the S&P/ASX 200 appears to have higher overall exposure to HALO names, much of that exposure is concentrated in large mining companies like BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO). These have earnings heavily tied to volatile commodity prices rather than steady, contracted revenues.

Because MVW weights companies more evenly, it reduces the dominance of these cyclical miners. Simultaneously it increases its allocation to a broader mix of infrastructure, utilities, energy networks, telecommunications, and consumer staples businesses. 

As a result, once the large miners are excluded, MVW actually has greater exposure to the types of companies that better reflect the HALO concept.

According to the report, this ASX ETF provides 1.4x overweight compared to the ASX 200 to the HALO names with contracted revenues, regulated cash flows, and essential demand characteristics.

The macro environment that supported MVW’s outperformance in March 2026 has not resolved. Oil prices remain elevated on geopolitical risk, the RBA has signalled rates will stay higher for longer and household budgets are under pressure.

In this environment, companies with contracted, inflation-linked revenues and essential demand characteristics are better positioned to protect margins than those exposed to discretionary spending, credit cycles, or technological disruption, we think.

The post Why this HALO focused ASX ETF outperformed over the last month appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Telix Pharmaceuticals Ltd (ASX: TLX) share price is in focus today after the company announced a major collaboration with US-based Regeneron Pharmaceuticals, highlighted by a US$40 million upfront payment and the development of next-generation radiopharmaceuticals for cancer treatment.

What did Telix Pharmaceuticals report?

• Entered a 50/50 global cost and profit-sharing agreement with Regeneron to co-develop radiopharmaceutical therapies targeting solid tumours.
• Receives a US$40 million upfront cash payment for four initial therapeutic programs, with the option for Regeneron to expand to four more programs.
• Potential to earn up to US$2.1 billion in development and commercial milestone payments plus low double-digit royalties if Telix opts out of co-funding any program.
• Joint development of diagnostic assets, with Telix leading commercialisation and Regeneron receiving a percentage of profits.
• Collaboration leverages Telix’s expertise in radiopharmaceuticals and Regeneron’s proprietary antibody platforms.

What else do investors need to know?

This collaboration brings together Telix’s strong track record in radiopharmaceutical manufacturing and Regeneron’s experience in antibody discovery and oncology. The combined expertise could help accelerate the development of innovative treatments for cancers with significant unmet needs, such as lung cancer.

The partnership also includes plans to create radio-diagnostic tools, supporting both targeted therapies and patient selection for optimal outcomes. Telix retains some flexibility to promote products and can choose its level of involvement for each program, potentially switching between co-funding or milestone- and royalty-based compensation.

What did Telix Pharmaceuticals management say?

Managing Director and Group CEO Christian Behrenbruch said:

The collaboration with Regeneron reflects a highly complementary set of capabilities and a unique opportunity to explore what true ‘next gen’ biologics-based radiopharmaceuticals can potentially do for patients.

What’s next for Telix Pharmaceuticals?

Telix and Regeneron will begin work on the first four programs under their collaboration, initially focusing on solid tumour targets from Regeneron’s antibody pipeline. Further expansion is possible if milestones are met and both parties exercise their program options.

Telix’s ability to co-develop diagnostics and therapies with Regeneron could set the stage for new approaches in precision oncology while expanding its global reach and product portfolio. Investors will be watching for progress updates and future milestones as the partnership unfolds.

Telix Pharmaceuticals share price snapshot

Over the past 12 months, Telix shares have declined 44%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Telix Pharmaceuticals announces US$40m Regeneron radiopharma deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Brambles Ltd (ASX: BXB) share price is in focus today after the logistics company received a judgment in its long-running shareholder class action. The Federal Court upheld some claims regarding Underlying Profit and revenue growth disclosures for a short period in late 2016 and early 2017, while dismissing others.

What did Brambles report?

• The Federal Court handed down its judgment on the class action relating to alleged misleading or deceptive conduct in 2016–2017.
• Most claims against Brambles were dismissed, with the Court only upholding certain claims for periods between 16 November 2016 and 23 January 2017.
• The Court dismissed all claims relating to medium-term FY19 targets.
• The total quantum of potential damages remains uncertain; financial impact is not yet determined.

What else do investors need to know?

Brambles is currently reviewing the extensive, 1,200-page Federal Court judgment to consider its legal and financial options. The company has insurance arrangements in place but says that final damages are unclear until further steps — including any appeals — are finalised.

Brambles has committed to keeping the market informed as it assesses both the financial risk and mitigation options. Management emphasised their ongoing disclosure obligations.

What’s next for Brambles?

Brambles stated it is assessing potential grounds for appeal, as well as the process for quantifying any damages. Until appeals or other legal proceedings conclude, the financial impact — if any — remains uncertain.

Investors can expect further updates as Brambles reviews the judgment and finalises its response. The company is also continuing to focus on its core logistics operations across global markets.

Brambles share price snapshot

Over the past 12 months, Brambles shares have risen 12%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

View Original Announcement

The post Brambles shares: Class action judgment update appeared first on The Motley Fool Australia.

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• GQG Partners share price in focus as Q1 FUM update reveals outflows
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• Telix Pharmaceuticals announces US$40m Regeneron radiopharma deal
• The a2 Milk Company lowers FY26 guidance amid supply chain challenges

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

BHP shares (ASX: BHP) have been on a wild ride. The mining giant steamed to a 52-week high of $59.39 in early March, only to tumble to roughly $47 not long after. But the story didn’t end there.

Over the past three weeks, BHP shares have clawed its way back to $53.98 at the time of writing, capping off a remarkable 52% gain over the past 12 months.

So, has the easy money already been made? Or is there still an opportunity for investors willing to dig deeper?

Let’s start with the positives — and there are plenty.

Exposure to copper

BHP remains one of the world’s lowest-cost producers. That’s a huge advantage in a sector where margins can swing wildly. When commodity prices fall, high-cost operators feel the squeeze first. BHP, by contrast, has the scale and efficiency to stay profitable through the cycle.

Then there’s its exposure to future-facing commodities. Copper, in particular, stands out. As electrification accelerates and the global energy transition gathers pace, demand for copper is expected to surge. The mining giant is well positioned to benefit from that structural tailwind.

Layer on a strong balance sheet and reliable cash generation, and it’s clear why BHP continues to appeal to long-term investors. This is a business built to endure — and potentially thrive — through volatility.

Highly reliant on China

But let’s not ignore the risks.

BHP is deeply cyclical. Its fortunes are closely tied to global growth and especially to China. If economic activity slows or Chinese demand weakens, commodity prices could slide further. That would put pressure on earnings and, by extension, the BHP share price.

There are also external pressures to watch. Geopolitical tensions, fluctuating energy costs, and rising labour expenses all have the potential to chip away at margins.

What do the experts think?

According to TradingView data, sentiment is mixed but still leans cautiously positive. Eleven analysts currently rate BHP shares as a hold, while seven have buy or strong buy recommendations. Two analysts sit on the bearish side with sell ratings.

The average 12-month price target comes in at $52.44, slightly below current levels. That implies a modest 2.9% downside. That suggests the market sees limited short-term upside after the recent rebound.

However, the bulls aren’t backing down. The most optimistic forecast tips BHP shares could climb to $65.82, representing a potential gain of around 22% from here.

Meanwhile, analysts at Morgans round out the picture with a hold rating of their own. They remain positive on the company’s long-term outlook but aren’t quite convinced it’s a screaming buy right now.

BHP is a diversified mining company producing iron ore, copper, nickel, metallurgical coal and potash. First half revenue in fiscal year 2026 grew 11 per cent on the prior corresponding period and profit after tax was up 28 per cent. The fully franked interim dividend of US73 cents a share was up 46 per cent and ahead of consensus. BHP’s fundamentals position it to play a recovery in China’s subdued growth. Capital expenditure cycles and copper growth provide a compelling reason to retain BHP as a core position in portfolios.

Foolish Takeaway

BHP shares may have pulled back from their highs, but the core investment case remains intact. For investors willing to ride out the commodity cycle, this could be a dip worth watching closely, even if patience is required.

The post Missed BHP shares’ massive run? Here’s what could happen next appeared first on The Motley Fool Australia.

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Motley Fool contributor Marc Van Dinther has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock Premier Investments Ltd (ASX: PMV) has fallen a painful 43% from its 52-week high in September 2025, as the chart below shows. This could be a great time to invest, in my view.

To put it mildly, that’s not ideal for shareholders. But, investing is a long-term endeavour and I think this is a great time to buy (more) Premier Investments shares.

‘Premier Investments’ is not exactly a household name, but many Australians have probably heard of one or more of its key businesses/assets.

It owns the pyjamas business Peter Alexander, the children’s accessories business Smiggle, and a substantial stake in the coffee machine company Breville Group Ltd (ASX: BRG).

Why it’s a good ASX dividend stock

Between 2011 and 2024, the business had a great track record of regularly increasing the payout, aside from the painful year of 2020, which impacted many ASX dividend stocks.

Premier Investments is a different business now, after divesting a number of its apparel businesses (like Just Jeans and Jay Jays) to Myer Holdings Ltd (ASX: MYR).

I think Premier Investments is a higher-quality company with more growth potential because Peter Alexander and Breville are a larger part of the Premier Investments pie.

In this new era for the business, I think the outlook is very positive for long-term earnings growth and good dividends.

The business paid an interim dividend of 45 cents per share in the FY26 half-year result. The projection on CMC Invest suggests that the business could pay an annual dividend per share of 76 cents.

At the time of writing, that translates into a potential grossed-up dividend yield of 8.3%, including franking credits. Plus, the projections on CMC Invest suggest the business could slightly increase its payout in FY27 and FY28 as well.

Why this is a good time to invest

The most obvious answer to why to invest now in the ASX dividend stock is because the Premier Investments share price is down heavily (more than 40%) – it’s good to be greedy when the market is fearful, after all.

Discretionary retail can be a volatile sector, so investing during the difficult times can be a smart play because of how much better value we can get.

Secondly, it’s good to focus on growing businesses. Peter Alexander and Breville are consistently growing revenue, while expanding their geographic reach. Peter Alexander added four new stores in the first half of FY26, while HY26 sales increased 4.9% year-over-year.

I’m also hopeful that the business can grow pleasingly in the UK (following the launch of a few stores in London), while also exploring “international wholesale opportunities with global best-in-class wholesale partners”.

I think Peter Alexander is very capable of growing its profit margins in the coming years thanks to strengthening scale benefits. Smiggle is performing weakly, but I’d rather invest now rather than when/if it returns to solid growth.

Using the earnings forecast on CMC Invest, the Premier Investment share price is valued at less than 14x FY26’s estimated earnings.

The post 1 ASX dividend stock down 43% I’d buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Breville Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Myer and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX materials stock Orora Ltd (ASX: ORA) was drawing plenty of attention last week after a trading update highlighted challenging operating conditions stemming from the ongoing conflict in the Middle East.

The company is a global packaging and distribution business.

Investors were heavily exiting their positions in Orora shares following the release of a trading update. 

Most notably, the update included a downgrade to earnings expectations for its Saverglass business.

According to the release, Orora now expects FY 2026 underlying EBIT for Saverglass to be in the range of 63 million euros to 68 million euros. This is down from previous guidance of broadly in line with FY 2025 EBIT of 79.2 million euros.

On a reported basis, EBIT is expected to fall further to between 52 million euros and 59 million euros.

Orora shares fell 25% across Thursday and Friday last week following the announcement. 

Its share price is now down approximately 33% in 2026. 

Middle East conflict weighing heavily on sentiment 

According to new guidance out of Morgans, the Middle East conflict has affected operations both directly and indirectly: directly through the effective closure of ORA’s Ras Al Khaimah (RAK) facility in the UAE, and indirectly through lower spirits volumes and an adverse product-mix shift, which have weighed on earnings. 

As a result, the broker has adjusted FY26/27/28F underlying EBIT by -8%/-11%/-10% for this ASX materials stock.

Given the ongoing uncertainty surrounding the conflict in the Middle East, visibility on the timing of a potential restart at the RAK facility remains limited. In addition, global consumer confidence and spirits demand have already been negatively affected by the conflict and may remain subdued for some time, even in the event of a near-term resolution.

Target price decreases – opportunity elsewhere says Morgans

Based on this guidance, Morgans reduced its price target to $1.55 (previously $2.30) for this ASX materials stock.

It maintained its hold rating. 

From last week’s closing price of $1.48, this price target indicates an upside of roughly 5%. 

The broker also noted that there is better opportunity elsewhere within the sector. 

Given this uncertainty, we believe it is prudent to await further updates before reassessing our view. Within the Packaging sector, our preference remains Amcor PLC (ASX: AMC).

The broker has a buy recommendation and $76.00 price target on Amcor shares. 

This indicates approximately 30% upside from its current stock price of $58.28. 

The post What’s this broker’s updated view on this ASX materials stock following a 25% fall? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. The Motley Fool Australia has recommended Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Last week, the team at Bell Potter released updated guidance on ASX small-cap stock EBR Systems Inc (ASX: EBR) after the company announced a preliminary version of its operating metrics. 

The ASX small-cap stock has developed its patented Wireless Stimulation Endocardially (WiSE) technology for the treatment of cardiac rhythm disease and to eliminate the need for cardiac pacing leads when delivering cardiac resynchronisation therapy.

What did EBR Systems report?

Last week, its release revealed a strong Q1 2026 growth in commercial cases.

It also said its WiSE® System was successfully implanted in 41 commercial patients during the quarter, bringing total implants across the pilot phase and Limited Market Release to 71. 

John McCutcheon, EBR Systems’ President & Chief Executive Officer said in Q1 2026, the company made impressive progress across both commercial and clinical programs. 

Case volumes increased strongly during the quarter, reflecting growing physician experience, expanding site readiness and the steady execution of our Limited Market Release. 

We also continued to advance important clinical initiatives, with further enrolment in both the WiSE-UP post-approval study and the TLC-AU feasibility study, helping to expand the body of evidence supporting the WiSE System across a broader patient population.

This news prompted positive share price movement to end last week, with EBR Systems shares closing at $0.67. 

Bell Potter’s buy recommendation and recent price target of $2.00 following this release indicates a potential upside of roughly 194%. 

Following this report, the team at Morgans also provided an updated outlook on EBR Systems shares. 

Momentum building

In a note out of the broker last Friday, Morgans said 1Q26 delivered a step-change in commercial execution, with 41 implants (+128% q/q) and preliminary revenue of US$2.25-2.36m, materially ahead of prior run-rate. 

Importantly, growth is being driven by repeat usage, not just new site additions, with the majority of 1Q implants coming from existing centres, supporting confidence in utilisation and scalability.

Morgans also said leading indicators remain strong, with 37 purchasing agreements, 55 physicians trained, and double-digit physician training demand, alongside with emerging multi-site IDN/GPO contracts. 

Buy recommendation in tact 

Morgans also noted that commercial bottleneck remains execution (sales capacity and contracting), not demand, with patient backlogs building and physician engagement “very high”. 

We make no changes to CY26-28 forecasts or A$2.47 DCF-based valuation. BUY.

From last week’s closing price of $0.67, this target indicates an estimated upside of approximately 268%. 

The post It could be time to buy-low on this ASX small-cap stock according to brokers appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The a2 Milk Company Ltd (ASX: A2M) share price is in focus after releasing a trading and outlook update, highlighting strong demand for its infant milk formula (IMF) in China and ongoing supply chain challenges.

What did The a2 Milk Company report?

• Year-to-date demand for a2 brand products remained strong across all regions and channels
• China label IMF sales remain robust, boosted by effective marketing and prior share gains
• Revenue growth for FY26 now expected to be low to mid double-digit percent versus FY25 (previously mid double-digit)
• EBITDA margin guidance lowered to 14.0% to 14.5% (was 15.5% to 16.0%)
• NPAT now forecast to be similar to or down on FY25 reported figure ($203 million)
• Cash conversion revised to approximately 50% (down from 80%)

What else do investors need to know?

Recent strength in demand for a2 Milk’s China label IMF products has contributed to temporary supply and product availability issues, with distribution impacted by factors including higher air and sea freight costs, extended quality assurance times, and tighter customs requirements in China. Some product lines, such as a2 Genesis in the cross-border e-commerce channel, have also faced near-term availability issues due to high demand and planned maintenance work.

While these supply chain disruptions are largely considered temporary, they are expected to materially affect fourth quarter sales, particularly during April and May, and have led the company to lower its full-year guidance. The company is working closely with supply chain and distribution partners in New Zealand and China to address backlogs and expedite shipments to customers.

What’s next for The a2 Milk Company?

The a2 Milk Company expects FY26 performance to be impacted by timing-related and one-off supply chain issues, resulting in lower than previously forecasted revenues and margins. However, management is confident these are temporary challenges, and the group is committed to reinvesting in its brands and maintaining long-term growth.

Capital works and a broader supply chain transformation at a2 Pōkeno remain on track, with anticipation of increased production capability in the first half of FY27. The company will continue providing updates as it navigates ongoing supply, regulatory, and geopolitical uncertainties.

The a2 Milk Company share price snapshot

Over the past 12 months, a2 Milk Company shares have risen 15%, slightly trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 16% over the same period.

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The post The a2 Milk Company lowers FY26 guidance amid supply chain challenges appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.